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Ownership of Richmond landmark Crain Sanitarium will be settled in court

The former Crain Sanitarium at 2116 E. Main St. in Richmond was built in the late 1800s and has served as a home, sanitarium, hospital, inn, tourist center and apartment building.(Photo: Jason Truitt/Palladium-Item)Buy Photo

RICHMOND, Ind. — Time and the elements have taken a toll on a historic Richmond home perched on the corner of one of the city's busiest intersections. But if there's any hope of restoration in the future, it will have to come after an ownership dispute can be settled in court.

The Crain property at 2116 E. Main St. has had a troubled history since it was built as a home around 1890 before serving as a sanitarium, hospital, inn, tourist center and apartment building and then sitting empty for nearly a decade.

More than two years ago, the city landmark appeared to get a new lease on life with the news that a California couple had signed a contract to buy the home from local owners Kris and Jill Nelson.

The Nelsons acquired the Queen Anne-style home in 2010 in an agreement between First Merchants Bank, Preserve Richmond, the Richmond Historic Preservation Commission and Indiana Landmarks.

They had planned to put businesses into the former sanitarium, but that dream never came to be.

Along came Heaven and Ben Johnson of California who agreed to buy the property on a land contract in March 2016. The Johnsons said they planned to fix up the place and eventually move their family to Richmond.

But shortly after they began work on the home, the Johnsons ended up in civil and criminal legal trouble.

Heaven Johnson pleaded guilty in June 2016 to a Class A misdemeanor charge of conversion and was sentenced to 180 days in jail, all of which was suspended to probation. She had been arrested after Menards staff reported the theft of a flashlight.

The Johnsons also were named in civil litigation related to the work they were doing on the home when two contractors filed notices in small claims court saying they hadn't been paid for their work.

Now, the Johnsons find themselves back in court.

Kris Nelson recently filed a complaint for forfeiture seeking to regain ownership of the Crain property.

According to the complaint filed by Nelson's attorney, Amy Noe Dudas, the Johnsons have failed to live up to several items required by the land contract, including:

The home either is below or is in danger of falling below community standards for public safety and sanitation.

According to court documents, on the day the Johnsons were served with the complaint, they tried to make several months' worth of payments to the Nelsons and catch up on unpaid property taxes.

The Nelsons refused to accept the money, and online tax records show even with a $785.40 payment to the county, $20 still is owed.

In answer to the Nelsons' court filing, the Johnsons have claimed state law prevents the property from being taken back because they now have a "significant equitable stake" in the home through a $15,000 down payment, 29 monthly payments and $35,000 in repairs and improvements.

According to online records, no court dates have been set in the case.

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The former owner of the home at 2110 E. Main St. in Richmond has filed a complaint in court that says the new owner has failed to live up to the requirements of a land contract between the two.(Photo: Jason Truitt/Palladium-Item)

The Nelsons also are in court trying to take back ownership of the home next door to the Crain Sanitarium. That property was to be sold on land contract to Mark Olson, but court documents claim he has failed to make payments since the beginning of this year and has fallen well behind in property tax payments.

No court dates have been set in that case yet either.

Jason Truitt is the team leader and senior reporter at the Palladium-Item. Contact him at (765) 973-4459 or jtruitt@pal-item.com.